The Southwest card makes sense if you fly Southwest regularly and want to offset the cost with rewards, but it costs money upfront and the benefits only pay off if you actually use them.
The Southwest Rapid Rewards card charges an annual fee — currently $69 for the standard version — and gives you points on every purchase you make. Those points convert to free flights on Southwest Airlines. The card also includes a companion pass after you spend enough in your first year, which lets one other person fly free when you book a paid ticket. Whether the card is worth it depends entirely on whether you fly Southwest enough to earn back more than the $69 you pay each year.
The real question is not whether the card is good in theory. It is whether the card is good for your actual life. If you never fly Southwest, the annual fee is pure cost. If you fly Southwest twice a year and would buy those tickets anyway, the points you earn might cover the fee and then some. If you fly Southwest constantly for work, the card probably pays for itself many times over.
Key Takeaways
- The Southwest card costs $69 per year and requires you to spend enough in your first year to earn a companion pass, which is the main way most people recoup the fee.
- You earn points on every purchase — not just flights — so even everyday spending at the grocery store or gas station adds up toward free flights.
- The card's value depends on your actual travel patterns; if you do not fly Southwest at least once or twice a year, the annual fee is unlikely to pay for itself.
- Southwest does not charge baggage fees, which means the card's rewards go further than they would with other airlines that charge per bag.
- You can compare the card's rewards rate to your current card to see whether the points you earn would exceed the $69 annual cost.
How the rewards actually work
Every dollar you spend on the Southwest card earns you one point, whether you are buying groceries, paying a utility bill, or booking a flight. You accumulate these points in your Southwest account, and once you have enough, you can redeem them for a free flight. The number of points needed for a flight varies based on the route and how far in advance you book — a short flight might cost 6,000 points, while a longer route could cost 15,000 or more.
The card also gives you bonus points when you first open the account. Right now, that bonus is typically 40,000 points if you spend $1,000 in the first three months, though the exact bonus changes periodically. That 40,000 points alone is enough for several free flights on shorter routes, which is why the sign-up bonus is the main way people recoup the annual fee in year one.
Beyond the points themselves, the card includes a companion pass once you meet the spending requirement. This pass lets one other person fly free whenever you book a paid ticket on Southwest. The companion does not earn points on their ticket, but they do not pay anything either. This is the feature that makes the card valuable for people who travel with a partner or family member regularly.
When the annual fee actually costs you money
The $69 annual fee is real money that comes out of your account every year, whether you use the card or not. To break even, you need to earn enough points and rewards to cover that fee. For most people, this happens through a combination of the sign-up bonus, everyday spending, and the companion pass.
If you spend $7,000 per year on the card, you earn 7,000 points from that spending alone. Add the sign-up bonus of 40,000 points, and you have 47,000 points in year one — enough for multiple free flights depending on the routes. In year two and beyond, you do not get the sign-up bonus, so you are relying on your regular spending and the companion pass to justify the fee.
The math breaks down if you do not fly Southwest. If you open the card, pay the $69 fee, and never take a Southwest flight, you have lost $69. If you open the card and fly Southwest once every two years, the points you earn might not be worth more than the annual fee. The card is designed for people who fly Southwest at least once or twice per year, or who spend enough on everyday purchases to accumulate points quickly.
How the companion pass changes the equation
The companion pass is where the card's value becomes clearer for many people. Once you meet the spending requirement in your first year — usually $1,000 to $2,000 depending on the current offer — you get a companion pass that is valid through the end of the following calendar year. This means if you open the card in January, your companion pass works through December of the next year, giving you roughly 23 months of use.
If you have a spouse, partner, or family member who travels with you, the companion pass can save you hundreds of dollars. A Southwest flight that costs $200 becomes free for your companion, which is a real savings. If you take even two or three trips with a companion during that 23-month window, the pass alone has paid for the annual fee many times over.
The catch is that the companion pass only works when you book the paid ticket yourself. You cannot give the pass to someone else to use, and the companion cannot use it on a flight you are not also taking. If you travel alone most of the time, the companion pass is less valuable to you, though you can still use it strategically for trips where you know you will have a travel partner.
Comparing the card to your current rewards setup
Before you open the Southwest card, look at what you currently earn with your existing credit card. If you use a general rewards card that gives you 2% cash back on all purchases, you are earning $140 per year on $7,000 of spending. The Southwest card gives you 7,000 points on that same $7,000, which might be worth $70 to $100 depending on the flight prices you typically see.
The comparison gets more favorable for Southwest if you spend heavily on categories where your current card does not earn bonus points. If your current card earns 1% on most purchases and you spend $10,000 per year on the Southwest card, you earn 10,000 points. Those points are worth more than the $100 you would earn in cash back on a 1% card, especially if you value free flights over cash.
You should also consider whether you have other Southwest benefits already. If you are a frequent Southwest flyer, you may already have elite status that includes free checked bags and priority boarding. The card does not duplicate those benefits, but it does accelerate your progress toward higher elite status tiers, which can be valuable if you are close to the next level.
The real cost of the annual fee in later years
Year one is usually the best year for the Southwest card because of the sign-up bonus. In year two and beyond, you do not get that bonus, so you are relying on your everyday spending and the companion pass to justify the $69 fee. This is when you need to be honest about whether the card still makes sense for you.
If you fly Southwest regularly and have a travel companion, the card probably still pays for itself. If your travel patterns have changed and you are flying less, or if you are traveling alone more often, the card might no longer be worth the annual fee. Many people keep the card for a year or two and then cancel it, which is a perfectly reasonable choice.
When you cancel, you lose the companion pass when ready, so time your cancellation carefully. If your companion pass is set to expire in three months anyway, canceling now makes sense. If you have 10 months of companion pass left, you might want to wait until closer to the expiration date to cancel, so you get full value from the benefit.
What to know about the sign-up bonus
The sign-up bonus is the biggest financial benefit of opening the card, and it is what makes the card worth considering in the first place. Right now, the bonus is typically 40,000 points if you spend $1,000 in the first three months, but this offer changes periodically. Before you open the card, check what the current bonus is, because a higher bonus makes the card more valuable.
The spending requirement is usually achievable if you use the card for regular purchases you were going to make anyway. Putting your monthly bills, groceries, and gas on the card for three months will get you to $1,000 without much effort. The key is to hit the spending requirement before the important date, because if you miss it, you do not get the bonus points.
You should also check whether you have opened a Southwest card in the past. Southwest has rules about how often you can earn the sign-up bonus — typically once every 24 months — so if you opened a Southwest card recently, you might not be able to earn the bonus right now. Check the card's terms or call Southwest directly to confirm your may be able to access for the bonus before you open the card.
Frequently Asked Questions
Do I have to use the card to keep the companion pass?
No. Once you earn the companion pass by meeting the spending requirement, it is yours to use for the rest of the calendar year and into the next year. You do not have to keep using the card to keep the pass. However, you do have to pay the annual fee each year if you want to keep the card itself.
What happens if I cancel the card before the annual fee hits?
If you cancel within the first 30 to 60 days, many card issuers will refund the annual fee. After that window closes, the fee is usually non-refundable. Check the card's terms or call the issuer to confirm their cancellation policy before you open the card.
Can I use the companion pass on a flight I book with points?
No. The companion pass only works when you book a paid ticket. If you redeem points for a free flight for yourself, your companion cannot use the pass on that same flight. You would need to book a separate paid ticket for your companion to use the pass.
How do I know if my spending will earn back the annual fee?
Add up how much you spend per year on credit cards, then multiply by the card's rewards rate (one point per dollar). Estimate what those points are worth based on Southwest flights you typically take. If that number is higher than $69, the card probably pays for itself. If it is lower, the card is unlikely to be worth the fee unless you have a travel companion who will use the companion pass.
Is the Southwest card better than a cash back card?
It depends on whether you value free flights or cash back more. If you fly Southwest regularly and would buy those tickets anyway, the card's points are worth more than cash back. If you rarely fly or prefer cash back, a general rewards card is probably better. Compare the value of the points you would earn to the cash back you would earn on your current card.